Friday, November 15, 2024

Retail Sector Sees Continued Price Stability In Consumer Goods

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Retail Sector Sees Continued Price Stability In Consumer Goods

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A supermarket industry leader said it is unlikely that consumers will see a significant change in the prices of most basic commodities this month as long as there are no unforeseen additions to the costs of manufacturers and retailers.

In an interview on Wednesday, Steven Cua, president of the Philippine Amalgamated Supermarkets Association (PAGASA), said inflationary pressures were relatively muted in April as most manufacturers had no reason to make adjustments in the prices of their goods.

However, he said the retail sector is taking a wait-and-see attitude on the possibility of another wage order being announced on Labor Day or shortly thereafter.

Cua explained that as long as future wage adjustments are kept within reasonable levels, consumers have no reason to worry about another spike in inflation, at least not one that will be initiated by the retail sector.

“Manufacturers are still waiting for clearer signals on where to position their products price-wise. Should it be on the higher or lower end? That’s just marketing strategy. That’s also why we are seeing little movement (in prices),” he said.

PAGASA is composed mostly of small and medium-sized supermarkets, and has nationwide membership.

Meanwhile, Cua said the Bangko Sentral ng Pilipinas’ (BSP) projection that last month’s inflation figure likely settled within the 3.5 to 4.3 percent range is “about right.”

The retail leader agreed with the BSP’s assessment that the “continued price increases for rice and meat along with higher gasoline prices and the peso depreciation are the primary sources of upward price pressures” in April.

On the other hand, the lower prices of fish, fruits, vegetables as well as lower electricity rates and the rollback in the price of cooking gas served to offset the upside price pressures.

“On the occasion of Labor Day, we are hopeful that the government will also consider the plight of entrepreneurs like us in the retail sector… who employ a lot of people. We are counting on them (government) to continue creating an environment conducive to investment,” Cua said. (PNA)